Which of the Following Statements Is TRUE

question 20

Multiple Choice

Which of the following statements is TRUE?

• A)Prices of bonds with lower durations are more sensitive to interest rate changes.
• B)If a bond's yield to maturity exceeds its coupon rate,the bond trades at a premium.
• C)Bonds with higher coupon rates are more sensitive to interest rate changes.
• D)If a bond's yield to maturity is less than its coupon rate,the bond trades at a premium.

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